Lavoro Limited ( (LVRO) ) has released its Q1 earnings. Here is a breakdown of the information Lavoro Limited presented to its investors.
Lavoro Limited, a prominent agricultural inputs retailer in Latin America, specializes in providing a diverse range of products and services to enhance farm productivity, with a notable presence in Brazil, Colombia, Uruguay, and Ecuador.
Lavoro Limited recently reported its fiscal first quarter 2025 earnings, revealing a decrease in consolidated revenue by 13% year-over-year to R$2.05 billion, primarily due to input price deflation in Brazil’s Ag Retail sector. Despite this, the company experienced a 10% increase in gross profit, driven by improved distribution margins.
Key financial metrics highlighted in the report include a significant 68% revenue growth in the Crop Care segment, attributed to the strong performance of subsidiaries Union Agro and Perterra. However, the company faced a net loss of R$267.1 million, exacerbated by changes in deferred tax assets and increased finance costs. Adjusted EBITDA fell by 5% to R$54.4 million, impacted by higher SG&A expenses.
Looking forward, Lavoro management has revised its fiscal year 2025 outlook, anticipating challenges due to tightened inventory financing conditions. The company remains committed to strategic measures aimed at positioning itself for potential market recovery and optimizing cost structures for improved future performance.